know what I remembered today?

Discussion in 'Economics' started by milktruck, Feb 19, 2009.

  1. remember when they floated that idea of putting social security into the market?

    forgot about that. holy shit.

    taxes are taxes whatever you call them I guess.
  2. tradersboredom

    tradersboredom Guest

    the stock market is just as important as the housing market as many people have investments or portfolios retirement portfolios especially seniors are down 50%

    this is the wealth effect reversal.

    people tend to spend less and a lot more conservative if their retirement portfolios are down and it effects retail sales especilally in houses and cars.

    people usually cashout their invesment portoflios are savings into stocks and bonds to buy homes now since the portfolios are down they have no money to buy homes so it's a cycle of investment and retail sales.